Buying a House... What the Hell am I doing?!

[85RedGolf2.5]

I have no clue as to where to start, been looking at what is available with my wife. We've found quite a few starting around the 100k mark which is right about middle of our monthly max for payments. I don't want to max myself out, and I'd like to get something that if I work on it a bit, can increase the value as well.

But here is the thing. I have absolutely NO Idea what the hell I'm doing when it comes to buying a house. I hear Realitors are sharks, then people say to get a Real Estate Attorney (think it is a waste of money), then our friends just went to some Broker, and got a "Farmer's Loan" for 150k and had to wait 10 days to get approved. But once approved, they just went shopping, found the house they liked, and wrote a check. That just seems too easy.

So, the question is...
Can anyone give me any advice and also share your home buying experience so the Wife and I can make an educated decision on which direction to head in to buy. We're hoping to have a house by Thanksgiving.


Thanks in advance.

 

[grambles423]

Without an extremely long winded response:

Understand what you can spend and DO NOT go over it. We got a realtor and he was 100% helpful with our home buying experience. I suggest finding one you like and stick with it.

 

[Gunkata]

100k? that's nothing I wish my house was that cheap.. my condo was, but yeah.

Whatever you do, imho.. if you are approved for XXX, look to spend no more than 3/4's of what they approve you for. Everything adds up FAST.

 

[85RedGolf2.5]

Do they get you the loan as well?

 

[Gunkata]

They usually have a broker or mtg company they can refer you to, yes.

 

[85RedGolf2.5]

Right now, our Rent is 844/month, Water is 95, and Electric is almost 250 in the summer for a little 1088 sq/ft apt. We figured, based off of mortgage calculators, we can easily do 800/month payment which equals around 150k, But to save money, and help pay off the other bills, we were looking around the 100k mark which would be more like 500/month, and then if the water and electric are what they are at the apartment, we will still be way ahead!

 

[85RedGolf2.5]

They usually have a broker or mtg company they can refer you to, yes.

What about those that have a bit of a Debt to income issue, but are never late or miss any payments? You think that would be an issue?

 

[danielj1]

Just get references from friends for mortgage brokers or companies, realtors and home inspectors.

Get pre qualified, get a realtor who you trust and a home inspector that knows their stuff. Easy!

 

[85RedGolf2.5]

You guys make it sound like it is easier than buying a car!

 

[Gunkata]

What about those that have a bit of a Debt to income issue, but are never late or miss any payments? You think that would be an issue?

probably not, lol.

You going FHA, bro? lol.. oh, the irony

Just get references from friends for mortgage brokers or companies, realtors and home inspectors.

Get pre qualified, get a realtor who you trust and a home inspector that knows their stuff. Easy!

this^

You guys make it sound like it is easier than buying a car!

haha.... nah, I think its a much slower and more detailed processed. Much can go awry, compared to the 4hours of buying a car that is lightning speed and people trying to fuck you every which way.

 

[danielj1]

I bought 3 homes in the span of 4 years so I'm comfortable with the process. Having trusted resources makes it easy.

The only difficult part is the waiting for approvals, signing your life away then wanting to renovate the new place lol.

There is a great sense of pride in owing your own home. Your mortgage won't go up but rents always will. Then the tax credit is icing on the cake.

 

[nouse4aname]

Buying a house is easy. I'm looking at my first time selling a house...and that process looks like a bitch. Especially with a dog and cat that need to go somewhere during showings and having to keep the place spotless 24/7 so you're ready for a showing with little notice. Not to mention trying to decide what improvements are worth investing in.

Bought this place in 2003 and I'll be lucky to get what I owe out of a sale ftl.

I think I'm done with owning a home. Think I'll rent one(a house not apartment - shared walls suck) just for the flexibility when it comes to moving when you want.

 

[85RedGolf2.5]

Well, damn, looks like this will be easier than I thought...

Even though I was medically seperated from the Navy, I'm going to see if I still can get any VA assistance or loan. I hear interest is a bit higher, but no down payment, which I have none right now, until tax return

 

[NBACousinVinnie]

Get a real estate agent. I am a licensed Realtor in CT. We are not all "sharks."

Find a good one by asking your friends/ co-workers/ acquaintances who have experience for a reference. If not, call around or walk in to an office and feel them out.

In CT, Realtors will have you sign a broker/ buyer agreement before they show you any houses. This says that you will only work with that agent for xx amount of time (typically 6 months). [This protects the client from unscrupulous acts, and the agent from wasting their time]

As a buyer, you typically don't pay anything for commission -- that is part of the seller's cost.

Since you are new to this, I would imagine it would be close to impossible for you to go at it alone. In addition to the need for a working knowledge of contract law, there are other things that have to be considered such as mortgage and inspection contingencies, that will need to be negotiated.

Save the hassle, get a Realtor!

Good luck!

**edit** Get a real estate attorney too - they are a necessary part of the process. The expense is typically $500-$750 here in CT -- but that gets folded in to your closing costs (which a good real estate agent will have wrapped in to your offer). Also, make sure you find a good (thorough) inspector, and DO THE INSPECTION!

 

[rs999]

I bought 3 homes in the span of 4 years so I'm comfortable with the process. Having trusted resources makes it easy.

The only difficult part is the waiting for approvals, signing your life away then wanting to renovate the new place lol.

There is a great sense of pride in owing your own home. Your mortgage won't go up but rents always will. Then the tax credit is icing on the cake.

How big is that tax credit, is it enough to move you down a tax bracket?

I've always been a renter even when I've had jobs that lasted 5-10 years in the same location.

What I have noticed about my home owning peers is that they seem wealthier. They own the same cars as me, same toys, same vacations taken, and some even have families.

What gives them that extra bit of money? The stable housing cost, the tax credit, heloc, etc?